Italy: Q2 GDP continues to fall
August 6, 2013
In the second quarter, GDP dropped a seasonally and working-day adjusted 0.2% over the previous quarter (Q1: -0.6% quarter-on-quarter), according to the first estimate released by the National Statistics Office (ISTAT) on 6 August. The contraction was broadly in line with the 0.3% drop FocusEconomics panellists had expected. This is Italy's eighth consecutive decline in economic output and the country's longest such streak. In annual terms, the economy fell 2.0% over the same quarter last year, which marks a slight improvement over the 2.3% drop seen in the first quarter.
The Bank of Italy expects a 1.9% contraction in GDP this year and a 0.7% rise in 2014. Panellists expect the economy to contract 1.5% in 2013, which is down 0.1 percentage points from last month's forecast, and to expand 0.5% in 2014.